Advice on First Post-PE Role
All - I'm currently a senior associate at a UMM PE shop. I think I've reached the point with my current firm that it's time to leave (for a variety of reasons) and I'm trying to be more deliberate in how I think about the next role rather than just recruiting for another buyout shop. At a high level (and happy to expand on any of these as necessary) -
- I like the investing role at a high-level and want to stay in the field
- I'd ideally like to find something that has me stopping work between 8-10pm vs. 12-2am on average. Obviously, deals happen and you work later when they do but I'd love to have a few hours of my day that I could allocate to normal human functions like working out / actually spending time with my GF / calling family / etc
- I really don't care for helping portfolio companies (especially struggling ones) and really want minimal to do with them at this stage. I might just be scarred by a few painful experiences as I do think it could be fun overall, but it has just been more of a headache than not in my career thus far
- I have no clue if I'm a good investor but I really don't think I have a stomach for risk, though not sure how different that is from most buyout investors / whether I actually need that much of a risk appetite. I just think I lean conservative when evaluating a company
With all the above (none of which are that novel based on countless other posts on this forum), I've started wondering whether private credit would be an appropriate alternative to try out, but I candidly know so little about the investing world beyond the broad categories of VC / PE / HF that I thought it might be helpful to get some guidance here on what else I should be considering. I'm sure many others have a similar sentiment to me so hoping it's a post that is helpful for others as well
Willing to look at other opportunities like family offices, secondaries, whatever it may be / not trying to stick to any formalized path at this point now that I've done the classic PE stint
FoF and Co-invest roles seemed interesting. If you have buyout background those should make sense and be a bit more relaxed regarding hours
Seconded, co-invest roles at pensions/SWFs would suit well
I love reading this anonymous post and easily imagining its any of the senior associates I know. Crazy how widespread the toxicity is in this industry
Don't see how this is toxicity? It's just an example of someone figuring out the things they want and trying to find a job that matches it. Isn't that the whole point of the usual 2+2 path? To get broad exposure and then find out what you enjoy most.
OP here
Would genuinely love to hear more about why you think my view is toxic. Maybe I need some perspective, which I'm very open to!
Reading my post again, I could see how the portco comment in particular would seem entitled, but I guess a more appropriate way of saying it is I don't think my skillset is suited to be an operator and I find it challenging to straddle the investing and operating functions in a very demanding job. I recognize that's one of the challenges of buyout investing which is why I'm looking to see if there are alternatives that make life a bit easier than what I'm experiencing
I think above commenter is referring to the semi-common 2am nights and lack of any time for normal human function as toxic, not your (and many others’ in your position) preference to escape it
I’ve heard co-invest and secondaries groups focus more on the investing aspect of the job and less so on managing portcos
Co-investing might be worth exploring but you will have limited interaction with companies / boards if you are remotely interested in that respect
Don’t some teams have a group that’s specifically focused on portco operations and another group that’s focused on investing? Why not join a group that doesn’t have their investment team also do operational work?
Yeah it's definitely an interesting thing to consider. My hunch would be that mostly MFs have these separate portco ops teams (though I'm likely mistaken and neglecting smaller players), which is typically a tough life but I'm obviously generalizing
Feeling the exact same. Happy to connect directly to share notes / brainstorm.
That would be great... Will DM
Would also recommend checking out some growth investing firms. Based on your post, and feel free to correct me if I'm wrong, I think that you probably aren't looking for any roles that are super sourcing-focused, but there are a couple of firms out there with really minimal sourcing. Think like IVP, BOND, CapitalG, GA, etc. Also, some of the PE growth platforms, I've heard, are better hours and do minimal sourcing as well, but really do your diligence before joining because some are doing atrociously right now (*cough cough* BX Growth).
Thanks! Do you suggest staying away from sourcing just because that makes the day-to-day busier, or you just don't see that as a desirable part of the investing role?
Edit: Misread your comment. You're probably right on sourcing. I'd be intrigued but it feels like one of those things that's cool and helpful in concept but probably demoralizing in practice / leads to cutthroat dynamics at the junior ranks?
Private credit could be interesting. Less risk, better WLB, way less port co, focus on high level diligence, less pay. Though would say large cap shops more likely to be sweaty and suck
Maybe look into top VC shops (although none are hiring atm so likely only in 1-2 years) - the top ones still model a decent amount (have been through a few processes which were modeling heavy + know direct colleagues there) so you flex the investing skillset vs. focusing on sourcing/networking which you get at smaller shops because they simply don't have the dealflow + limited portco responsibility as there's usually operators in the team with actual experience who focus on that.
Honestly think you'd gauge your eyes out at FoF coming from UMM given the lack of actual investment analysis; obviously generalising but have countless anecdotes + no one considers FoF as actual investing in the PE world, similar to co-invest (but it is definitely more chill if WLB incentive outweighs the investing skillset part).
Overall think you're in a pretty good position - use your platform to network with individuals in all these seats (VC, Secondaries, Family Offices, Co-Invest etc.) - that will be much better use of your time (if you can spare it) to help you decide your next move
Interesting, thanks
Not sure of your familiarity with FoF / co-invest, but does it seem like those positions are always available to those from PE? Or is it mostly necessary to enter at more junior levels?
I think one thing I've struggled with understanding is whether staying in PE for too long restricts access to those alternate careers with a different WLB equation. If not, seems like a valid approach for many would be to stick around in PE for as long as bearable to get more accelerated learning and then transition over to those when priorities change
100% - especially if you've come from a notable MM / UMM you completely have the skillset / would be more in-demand than usual hires into those roles (although not sure re top senior level nuances; should definitely be fine at SA though).
Most people in PE FoF I know started off on PE internships but failed to convert so that was the best offer to them - it's still a pretty good path (less hours, still decent pay), but just doesn't have the same prestige as Direct PE investing - you're effectively a PE portfolio manager in it's truest sense which some find interesting, but means you won't get actual company analysis (as you effectively diligence IRR benchmarks and play a risk mgt holistic fund strategy).
- Co-invest is definitely more interesting for the investing-minded, but still has it drawbacks (less investing autonomy; less coming up with the investment strategy vs. just reading someone else's etc.)
Re long-term PE career, only you can answer that. Maybe write down what truly matters to you > if looking at a variety of business models, adrenaline from DD timelines and prestige are top then that's hard to beat outside of PE (so you may just want to move to a more chilled MM shop which has a separate Operating team). If you're willing to sacrifice some prestige, you'll always be able to move into a strategy position at any good Corporate, or a functional role if you desired to really take a step back.
PE will never hinder your ops to move into any Corporate role with a better WLB and still very good pay e.g. Corp Dev / CVC (apart from maybe heavy tech roles e.g. CTO if that's interesting for you) > outside of the "business" world though who knows
I’m feeling the exact same after two years at a MF. Starting to explore family office and co-invest roles for better WLB but still with the intellectual rigor of investing
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